DAYTONA BEACH, Fla., Oct. 9 /PRNewswire-FirstCall/ -- International
Speedway Corporation (NASDAQ:ISCA)(OTC:ISCB) (BULLETIN BOARD: ISCB)
("ISC") today reported results for the three and nine months ended
August 31, 2008. "We are pleased with our overall results for the
third quarter when considering the impact of the continued economic
slowdown on attendance- related revenues for our events," said ISC
President Lesa France Kennedy. "On a comparable event basis, which
excludes the results of Auto Club Speedway's fall NASCAR race
weekend that is typically hosted in our fiscal fourth quarter, we
posted year-over-year total revenues that were down slightly. In
addition, our bottom line results benefited from our ongoing cost
containment initiatives, with a particular focus on reducing
general and administrative expenses." Ms. France Kennedy continued,
"Supporting our near and long-term prospects is a core base of
millions of NASCAR fans that are fiercely brand-loyal, which also
continue to attract corporate marketing partners. While the economy
is clearly having an impact on fans' discretionary spending, they
remain very avid and continue to attend live events. These factors,
combined with ISC's collection of assets including premier events
in key markets, place our company in a unique position for
long-term growth while mitigating the issues of the current market
environment." Third Quarter Comparison Total revenues for the third
quarter were $213.2 million, compared to revenues of $195.6 million
in the prior-year period. Operating income increased to $61.0
million during the period compared to $48.2 million in the third
quarter of fiscal 2007. Quarter-over-quarter comparability was
impacted by: -- The NASCAR Sprint Cup and Nationwide series race
weekend at Auto Club Speedway conducted in the third quarter of
2008 as compared to the fourth quarter of 2007. -- An IndyCar(R)
Series weekend held at Michigan International Speedway in the third
quarter of 2007 that was discontinued after the 2007 race season.
-- Accelerated depreciation of $0.5 million, or $0.01 per diluted
share after tax, in the third quarter of 2008 for certain office
and related buildings in Daytona Beach associated with the
Company's previously announced Daytona Live! project. The 2007
third quarter included accelerated depreciation charges of $6.9
million, or $0.08 per diluted share after tax. -- The 2007 third
quarter write-down by Motorsports Authentics ("MA") of certain
inventory and related assets, which was included in ISC's equity
losses. ISC's 50 percent portion of the loss was $12.4 million, or
$0.24 per diluted share after tax. -- The 2007 third quarter
recognition of $1.6 million, or $0.03 per diluted share after tax,
in deferred income tax expense attributable to enactment of an
income-based tax system in the state of Michigan. -- The 2008 third
quarter recognition of a tax benefit of $3.5 million, or $0.07 per
diluted share after tax, associated with certain restructuring
initiatives. Net income for the third quarter of 2008 increased to
$38.8 million, or $0.79 per diluted share, compared to net income
of $9.5 million, or $0.18 per diluted share, in the prior year's
third quarter. Excluding discontinued operations and the
aforementioned accelerated depreciation and the recognition of a
tax benefit, non-GAAP (defined below) net income for the third
quarter of 2008 was $35.7 million, or $0.73 per diluted share. This
is compared to non- GAAP net income for the third quarter of 2007
of $27.9 million, or $0.53 per diluted share. Year-to-Date
Comparison For the nine months ended August 31, 2008, total
revenues were $582.0 million, compared to $561.4 million in 2007.
Operating income for the nine month period was $170.9 million
compared to $149.0 million in the prior year. Year-over-year
comparability was impacted by: -- The aforementioned timing of Auto
Club's fall NASCAR weekend and Michigan's IndyCar Series weekend,
which was discontinued after 2007. -- Accelerated depreciation
charges in 2008 of $1.6 million, or $0.02 per diluted share after
tax, associated with the previously discussed Daytona Live!
project. Results for the nine months ended August 31, 2007,
included accelerated depreciation charges of $14.2 million, or
$0.17 per diluted share after tax. -- The previously discussed tax
benefit of $3.5 million, or $0.07 per diluted share after tax,
recognized in the third quarter of 2008. -- A 2008 first quarter
non-cash charge of $3.8 million, or $0.08 per diluted share after
tax, to correct the carrying value of certain other assets as of
November 30, 2007. -- 2008 impairment charges of $1.9 million, or
$0.02 per diluted share after tax, associated with the previously
discussed fill removal costs on Staten Island and net book value of
certain assets retired from service. Results for the nine months
ended August 31, 2007, included an impairment charge of $9.2
million, or $0.11 per diluted share after tax related to the
Company's decision to discontinue speedway development efforts in
Kitsap County, Washington, and to a lesser extent, estimated costs
for fill removal on the Company's Staten Island property. -- The
aforementioned 2007 third quarter write-down by MA of certain
inventory and related assets, which was included in ISC's equity
losses and equated to $12.4 million, or $0.24 per diluted share
after tax. -- The previously discussed 2007 third quarter
recognition of $1.6 million, or $0.03 per diluted share after tax,
in deferred income tax expense attributable to enactment of an
income-based tax system in the state of Michigan. Net income for
the nine months ended August 31, 2008, was $101.0 million, or $2.02
per diluted share, compared to $63.7 million, or $1.20 per diluted
share in 2007. Excluding discontinued operations and the
aforementioned accelerated depreciation, the recognition of a tax
benefit, the correction of certain other assets' carrying value
amounts, and certain impairment and related charges, non-GAAP net
income for the nine months ended August 31, 2008, was $103.5
million, or $2.07 per diluted share. This is compared to non-GAAP
net income for the first nine months of 2007 of $92.4 million, or
$1.75 per diluted share. GAAP to Non-GAAP Reconciliation The
following financial information is presented below using other than
generally accepted accounting principles ("non-GAAP"), and is
reconciled to comparable information presented using GAAP. Non-GAAP
net income and diluted earnings per share below are derived by
adjusting amounts determined in accordance with GAAP for certain
items presented in the accompanying selected operating statement
data, net of taxes. The 2007 adjustment relates to: additional
depreciation associated with building structures in the Company's
office complex in Daytona Beach; impairment charges associated with
ISC's decision to discontinue speedway development efforts in
Kitsap County, Washington, and, to a lesser extent, fill removal
costs on the Company's Staten Island property; increased deferred
income tax expense related to the change in Michigan state tax
laws; and, the write-down of certain inventory and related assets
at MA. The adjustments for 2008 relate to: accelerated depreciation
for certain office and related buildings in Daytona Beach; the
impairment of long-lived assets associated with the fill removal
process on the Staten Island property and the net book value of
certain assets retired from service; a tax benefit associated with
certain restructuring initiatives; and, a non-cash charge to
correct the carrying value of certain other assets. The Company
believes such non-GAAP information is useful and meaningful to
investors, and is used by investors and ISC to assess core
operations. This non-GAAP financial information may not be
comparable to similarly titled measures used by other entities and
should not be considered as an alternative to operating income, net
income or diluted earnings per share, which are determined in
accordance with GAAP. (In Thousands, Except Per Share Amounts)
(Unaudited) Three Months Ended Nine Months Ended August 31, August
31, August 31, August 31, 2007 2008 2007 2008 Net income $9,517
$38,791 $63,726 $100,974 Net loss from discontinued operations, net
of tax 30 51 56 118 Income from continuing operations 9,547 38,842
63,782 101,092 Adjustments, net of tax: Additional depreciation
4,262 320 8,689 960 Impairment of long-lived assets 69 20 5,937
1,175 Inventory-related write down of equity investment 12,414 -
12,414 - Tax benefit associated with restructuring initiatives -
(3,477) - (3,477) Michigan income tax 1,595 - 1,595 - Correction of
certain other assets' carrying value - - - 3,758 Non-GAAP net
income $27,887 $35,705 $92,417 $103,508 Per share data: Diluted
earnings per share $0.18 $0.79 $1.20 $2.02 Net loss from
discontinued operations, net of tax - - - - Income from continuing
operations 0.18 0.79 1.20 2.02 Adjustments, net of tax: Additional
depreciation 0.08 0.01 0.17 0.02 Impairment of long-lived assets -
- 0.11 0.02 Inventory-related write down of equity investment 0.24
- 0.24 - Tax benefit associated with restructuring initiatives -
(0.07) - (0.07) Michigan income tax 0.03 - 0.03 - Correction of
certain other assets' carrying value - - - 0.08 Non-GAAP diluted
earnings per share $0.53 $0.73 $1.75 $2.07 2008 Third Quarter
Highlights An overview of the significant major event weekends held
in the third quarter of 2008 includes: -- Watkins Glen
International hosted a successful weekend of sports car racing in
June, highlighted by the fourth Grand-Am Rolex Series Daytona
Prototype victory of the season for Scott Pruett and Memo Rojas in
the 27th running of the Sahlen's Six Hours of The Glen. -- Michigan
International Speedway hosted the NASCAR Sprint Cup, NASCAR
Craftsman Truck and ARCA RE/MAX series in mid-June. Fans were
treated to a full weekend of racing that culminated with
fan-favorite Dale Earnhardt Jr. winning the Sprint Cup LifeLock
400. -- Richmond International Raceway held a successful weekend of
IndyCar Series racing highlighted by a record crowd for the
SunTrust Indy Challenge. -- Daytona International Speedway hosted a
Sprint Cup, Nationwide and Grand-Am racing weekend, highlighted by
a thrilling green-white-checkered finish in the Coke Zero 400
Powered by Coca-Cola that resulted in Kyle Busch's first Sprint Cup
victory at the historic facility. -- Watkins Glen hosted an
exciting weekend of open wheel racing, which featured increased
attendance for the Camping World Grand Prix at The Glen and Ryan
Hunter-Reay's first IndyCar Series victory. -- Chicagoland Speedway
sold out its season tickets for the 2008 racing season as it
prepared for the first-ever night races at the facility. Kyle Busch
won both the NASCAR Nationwide Dollar General 300 Powered by
Coca-Cola and the NASCAR Sprint Cup LifeLock.com 400. -- ISC, with
its partner Group Motorise International, hosted a successful
weekend of exciting NASCAR stock and Grand-Am sports car racing at
the historic Circuit Gilles Villeneuve in Montreal, Canada. Ron
Fellows captured the victory in a rain-shortened Nationwide NAPA
Auto Parts 200 presented by Dodge over fellow Canadian Patrick
Carpentier. -- Watkins Glen hosted a weekend of Sprint Cup,
Nationwide and Grand-Am racing, anchored by the Centurion Boats at
The Glen. Kyle Busch scored his eighth win of the Sprint Cup season
and became the first driver in NASCAR history to win three road
course events in a season. -- At Michigan, Carl Edwards captured a
rare weekend sweep with victories in NASCAR's Sprint Cup 3M
Performance 400 presented by Bondo and Nationwide CARFAX 250. --
Auto Club Speedway hosted a weekend of NASCAR Sprint Cup and
Nationwide Series racing highlighted by Jimmie Johnson winning the
Pepsi 500 and becoming only the second driver to win three Sprint
Cup races at the speedway. Fourth Quarter Events To date in the
fiscal fourth quarter: -- In spite of Tropical Storm Hanna, the
field for the Chase for the Sprint Cup Championship was set at
Richmond with another highly-competitive Chevy Rock and Roll 400.
Jimmie Johnson won the Cup race and Carl Edwards secured victory in
the NASCAR Nationwide Series Emerson Radio 250. -- Chicagoland
played host to premier open-wheel season-finales with Scott Dixon
winning his second IndyCar Series Championship. The weekend also
featured the season-ending Firestone Indy Lights event as well as
an exciting ARCA RE/MAX Series stock car race. -- Kansas Speedway
hosted a NASCAR Sprint Cup and Nationwide series weekend
highlighted by Jimmie Johnson winning his fifth Sprint Cup race of
the year in the Camping World RV 400. -- Talladega Superspeedway
hosted a successful weekend of Sprint Cup, Craftsman Truck and ARCA
RE/MAX events highlighted by Tony Stewart picking up his first
career Sprint Cup victory at NASCAR's most competitive track. The
anchor event featured 28 different leaders, a record for the Sprint
Cup series race, and no driver held the lead for more than 20
consecutive laps. For the remainder of the fourth quarter, ISC will
host a Sprint Cup and Craftsman Truck series weekend at
Martinsville Speedway, and a NASCAR triple- header weekend at
Phoenix International Raceway. Finally, Homestead-Miami Speedway
will host the Ford Championship Weekend, where season champions
will be crowned for all three of NASCAR's national touring series.
While the Company has begun to experience a slowdown in corporate
spending for hospitality, ISC has sold all of its 2008 event
entitlements and continues to anticipate year-over-year growth in
sponsorship revenue for the full year. And, while the Company
enjoys significant visibility in corporate marketing partner
revenue as the majority of agreements are for multiple years, ISC
continues to evaluate the potential impact of the economy on
corporate marketing programs for 2009. It is important to note,
however, that entitlements have been secured for more than 75
percent of its 2009 schedule of major events. "We are off to a good
start for 2009, with agreements in place for a substantial portion
of our marketing partnership inventory," added Ms. France Kennedy.
"And, while the process of securing deals has become more time
consuming, we continue to have discussions with partners attracted
by our unique array of marketing assets that allow us to tailor
marketing programs to their specific business needs." Another
bright spot for the Company is the continued successful turnaround
at MA, the Company's motorsports-related merchandise 50/50 joint
venture with Speedway Motorsports. The Company remains optimistic
about MA's multi-faceted turnaround plan designed to grow top line
revenue while controlling expenses. The results for the first three
quarters of 2008 are encouraging, but with the main sales cycle for
MA being in the first half of the year, ISC projects MA to
contribute between $2.0 and $3.0 million in equity income to ISC
for the 2008 full year. For 2009, the Company expects MA will face
a more difficult sales climate due to economic conditions. And,
unlike in 2008 with Dale Earnhardt Jr's move to Hendrick
Motorsports, it is not expected to benefit materially from driver
or team changes. MA also benefited in 2008 from significant
merchandise sales surrounding the historic 50th running of the
Daytona 500. There is not a significant milestone event for 2009
that is expected to have a similar impact on sales. With all of
these factors combined, ISC does not currently expect that MA will
post financial results in 2009 that are as strong as 2008. External
Growth and Related Initiatives On September 19, 2008, the Kansas
Lottery Gaming Facility Review Board ("Review Board") awarded ISC
and The Cordish Company's ("Cordish") Hard Rock Hotel & Casino
proposal the casino management contract for Wyandotte County,
Kansas. The 50/50 joint venture will build a 1.5
million-square-foot, gaming and entertainment destination on
property adjacent to Kansas Speedway. The development will include
a 300-room luxury hotel; a state-of-the-art casino with 3,000 slot
machines and 140 gaming tables; 275,000 square-feet of destination
retail, dining and entertainment including a live music venue;
first class resort amenities; and extensive meeting and convention
facilities. The joint venture is finalizing its casino management
contract with the Kansas Racing and Gaming Commission, which
includes completing the technical licensure process. The project is
expected to cost approximately $705 million to construct and is
scheduled for completion in 2011. Depending upon market conditions,
the joint venture anticipates contributing between 20 and 40
percent in equity. The remaining portion is expected to be funded
by non-recourse, secured debt financing, and will not be required
until the second half of 2009 under any scenario. During
construction of the hotel and casino entertainment development, the
joint venture will operate an initial phase casino with
approximately 2,000 slot machines and 75 gaming tables. The
estimated construction cost for the initial phase casino is between
$80 million and $90 million, with construction beginning in January
or February and opening in late 2009. ISC's 50 percent cash
contribution to construct the initial phase casino will be between
$40 million and $45 million, and will be part of its total equity
outlay for the project. Included in the joint venture's proposal
was ISC's commitment to petition NASCAR to realign a second Sprint
Cup Series race to Kansas Speedway by no later than 2011. The
source of the race, which will come from one of ISC's other
facilities, has not been determined. The Daytona Live! project, the
mixed-use entertainment destination development that ISC is
pursuing in a 50/50 joint venture with Cordish, is moving forward
as expected. The eight-story office building that will serve as
ISC, NASCAR and Grand-Am's corporate headquarters is currently
under construction with completion expected late in the fourth
quarter of 2009. The joint venture has financed the construction of
its new headquarters with a $51.3 million loan that matures 25
years after the completion of the headquarters building with an
interest rate of 6.25 percent. The loan is non- recourse and
secured by ISC's lease payments to the joint venture. In accordance
with FASB Interpretation No. 46(R), "Consolidation of Variable
Interest Entities," the Company determined that the Daytona Live!
headquarters building is a variable interest entity for which it is
considered to be the primary beneficiary. As the primary
beneficiary, ISC has consolidated this entity in its financial
statements as of August 31, 2008. The retail, dining and
entertainment portion of Daytona Live! is being actively marketed
by Cordish. It is early in the process, but the Company remains
encouraged by the discussions Cordish is having with potential
tenants. As previously announced, Cobb Theaters has committed to
65,000 square feet for its state-of-the-art theater that is
currently under design. On Staten Island, ISC continues to have
discussions with interested buyers for the 676 acre parcel, and
remains hopeful that a transaction will occur in 2009. The Company
expects to cease all site-work by the end of the 2008 fiscal year.
As a result, ISC does not expect to capitalize any interest expense
in 2009 relating to the Staten Island property. For the full year
of 2008, the Company anticipates capitalizing approximately $4
million of interest expense related to its Staten Island efforts.
Share Repurchase Program In the 2008 third quarter, ISC purchased
approximately 743,000 shares of its Class A Common Stock for $29.5
million. From initiation of the program in December 2006 through
August 2008, the Company purchased a total of 4.5 million shares
for $200.5 million, leaving $49.5 million in remaining capacity on
its $250 million authorization as of August 31, 2008. ISC continues
to believe its capital allocation strategy reflects a balanced
approach that enhances shareholder value and further positions the
Company for long-term success. Outlook Given the challenging
macro-economic environment and its impact on consumer and corporate
spending trends, the Company has re-evaluated its revenue and
earnings per share expectations for 2008 and 2009. The Company now
expects full year total revenues to range between $780 million and
$785 million for fiscal 2008. In addition, ISC anticipates full
year non-GAAP earnings for 2008 of between $2.80 and $2.85 per
diluted share. ISC expects non-GAAP earnings before interest,
taxes, depreciation and amortization ("EBITDA")(1) margins,
operating margins, and effective income tax rates for the 2008 full
year to range as follows: Year Ending 11/30/2008 EBITDA margin 38%
- 39% Operating margin 30% - 31% Effective tax rate 38% - 39% 1.
EBITDA is a non-GAAP financial measure used by the Company as an
important indicator of its operating margin. For 2009, given the
current economic backdrop and with indications that a broad-based
recovery may not occur until well into the year, the Company, in
its initial stages of budgeting, expects total revenue could be
down as much as three to four percent compared to its revised 2008
full year guidance. And while ISC expects to keep its 2009
controllable event and administrative expenses flat with 2008,
there are a number of factors that will contribute to earnings per
share results that could be five to 10 percent lower than the
Company's revised 2008 full year guidance. These factors are
primarily associated with: lower capitalized interest for Staten
Island; a materially higher interest rate associated with
refinancing $150 million of 4.2 percent Senior Notes due in April
2009; and, lower equity income from MA as compared to 2008. Ms.
France Kennedy concluded, "I would like to reiterate that despite
the current economic challenges, our core business remains sound.
NASCAR is a leading sports property, boasting a base of 75 million
fans. It remains the second highest rated sport on television and
leads all major sports properties in sponsor satisfaction.
Supported by a strong balance sheet and significant cash flow and
earnings visibility, ISC is in a great position to capitalize on
NASCAR's continued success. We remain focused on our strategic
initiatives designed to leverage our assets and expertise to drive
consumer and corporate interest for our events. Supporting these
efforts will be continued reinvestments at our existing facilities
in amenities and enhancements to improve the fan experience, as
well as the exploration of additional opportunities to grow our
business through complementary developments designed to unlock the
tremendous value of our assets." Conference Call Details The
management of ISC will host a conference call today with investors
at 9:00 a.m. Eastern Time. To participate, dial toll free (888)
694-4641 five to ten minutes prior to the scheduled start time and
request to be connected to the ISC earnings call, ID number
65106031. A live Webcast will also be available at that time on the
Company's Web site, http://www.iscmotorsports.com/, under the
"Investor Relations" section. A replay will be available two hours
after the end of the call through midnight Thursday, October 16,
2008. To access, dial toll free (800) 642-1687 and enter the code
65106031, or visit the "Investor Relations" section of the
Company's Web site. International Speedway Corporation is a leading
promoter of motorsports activities, currently promoting more than
100 racing events annually as well as numerous other
motorsports-related activities. The Company owns and/or operates 13
of the nation's major motorsports entertainment facilities,
including Daytona International Speedway(R) in Florida (home of the
Daytona 500(R)); Talladega Superspeedway(R) in Alabama; Michigan
International Speedway(R) located outside Detroit; Richmond
International Raceway(R) in Virginia; Auto Club Speedway of
Southern California(SM) near Los Angeles; Kansas Speedway(R) in
Kansas City, Kansas; Phoenix International Raceway(R) in Arizona;
Chicagoland Speedway(R) and Route 66 Raceway(SM) near Chicago,
Illinois; Homestead-Miami Speedway(SM) in Florida; Martinsville
Speedway(R) in Virginia; Darlington Raceway(R) in South Carolina;
and Watkins Glen International(R) in New York. In addition, ISC is
a limited partner with Group Motorise International in the
organization and promotion of certain events at Circuit Gilles
Villeneuve in Montreal, Canada. The Company also owns and operates
MRN(R) Radio, the nation's largest independent sport radio network;
the Daytona 500 Experience(SM), the "Ultimate Motorsports
Attraction" in Daytona Beach, Florida, and official attraction of
NASCAR(R); and Americrown Service Corporation(SM), a subsidiary
that provides catering services, food and beverage concessions, and
produces and markets motorsports-related merchandise. In addition,
ISC has an indirect 50 percent interest in Motorsports
Authentics(R), which markets and distributes motorsports-related
merchandise licensed by certain competitors in NASCAR racing. For
more information, visit the Company's Web site at
http://www.iscmotorsports.com/. Statements made in this release
that express the Company's or management's beliefs or expectations
and which are not historical facts or which are applied
prospectively are forward-looking statements. It is important to
note that the Company's actual results could differ materially from
those contained in or implied by such forward-looking statements.
The Company's results could be impacted by risk factors, including,
but not limited to, weather surrounding racing events, government
regulations, economic conditions, consumer and corporate spending,
military actions, air travel and national or local catastrophic
events. Additional information concerning factors that could cause
actual results to differ materially from those in the forward-
looking statements is contained from time to time in the Company's
SEC filings including, but not limited to, the 10-K and subsequent
10-Qs. Copies of those filings are available from the Company and
the SEC. The Company undertakes no obligation to release publicly
any revisions to these forward-looking statements that may be
needed to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events. The inclusion of
any statement in this release does not constitute an admission by
International Speedway or any other person that the events or
circumstances described in such statement are material.
Consolidated Statements of Operations (In Thousands, Except Per
Share Amounts) Three Months Ended Nine Months Ended August 31,
August 31, August 31, August 31, 2007 2008 2007 2008 (Unaudited)
REVENUES: Admissions, net $62,970 $62,697 $175,518 $172,242
Motorsports related 112,954 129,572 322,453 343,657 Food, beverage
and merchandise 17,663 18,393 57,028 58,821 Other 1,978 2,546 6,380
7,284 195,565 213,208 561,379 582,004 EXPENSES: Direct: Prize and
point fund monies and NASCAR sanction fees 35,067 44,076 101,341
111,857 Motorsports related 46,364 50,888 115,244 124,912 Food,
beverage and merchandise 10,605 11,670 33,506 36,201 General and
administrative 31,383 27,651 90,127 83,631 Depreciation and
amortization 23,825 17,865 62,973 52,618 Impairment of long-lived
assets 108 33 9,184 1,914 147,352 152,183 412,375 411,133 Operating
income 48,213 61,025 149,004 170,871 Interest income and other
1,402 398 3,699 (2,278) Interest expense (4,041) (4,012) (11,781)
(10,899) Equity in net (loss) income from equity investments
(17,145) (140) (21,756) 4,614 Minority interest - 130 - 130 Income
from continuing operations before income taxes 28,429 57,401
119,166 162,438 Income taxes 18,882 18,559 55,384 61,346 Income
from continuing operations 9,547 38,842 63,782 101,092 Loss from
discontinued operations, net of income tax benefits (30) (51) (56)
(118) Net income $9,517 $38,791 $63,726 $100,974 Basic earnings per
share: Income from continuing operations $0.18 $0.79 $1.21 $2.02
Loss from discontinued operations - - - - Net income $0.18 $0.79
$1.21 $2.02 Diluted earnings per share: Income from continuing
operations $0.18 $0.79 $1.20 $2.02 Loss from discontinued
operations - - - - Net income $0.18 $0.79 $1.20 $2.02 Dividends per
share $- $- $0.10 $0.12 Basic weighted average shares outstanding
52,473,146 49,035,405 52,791,267 49,929,943 Diluted weighted
average shares outstanding 52,583,820 49,123,363 52,905,851
50,025,969 Consolidated Balance Sheets (In Thousands) November 30,
2007 August 31, 2008 (Unaudited) ASSETS Current Assets: Cash and
cash equivalents $57,316 $51,610 Short-term investments 39,250 200
Restricted cash - 3,206 Receivables, less allowance of $1,200 in
2007 and 2008, respectively 46,860 60,685 Inventories 4,508 5,454
Deferred income taxes 1,345 5,155 Prepaid expenses and other
current assets 10,547 23,342 Total Current Assets 159,826 149,652
Property and Equipment, net of accumulated depreciation of $410,192
and $456,479, respectively 1,303,178 1,323,773 Other Assets:
Long-term restricted cash and investments - 43,379 Equity
investments 76,839 80,983 Intangible assets, net 178,984 178,876
Goodwill 118,791 118,791 Deposits with Internal Revenue Service
117,936 117,936 Other 26,563 34,675 519,113 574,640 Total Assets
$1,982,117 $2,048,065 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities: Current portion of long-term debt $2,538 $152,875
Accounts payable 37,508 27,270 Deferred income 128,631 151,700
Income taxes payable 22,179 7,884 Other current liabilities 21,447
23,904 Total Current Liabilities 212,303 363,633 Long-Term Debt
375,009 273,381 Deferred Income Taxes 214,109 92,914 Long-Term Tax
Liabilities - 160,884 Long-Term Deferred Income 15,531 14,890 Other
Long-Term Liabilities 6,077 9,338 Commitments and Contingencies - -
Shareholders' Equity: Class A Common Stock, $.01 par value,
80,000,000 shares authorized; 30,010,422 and 27,385,472 issued and
outstanding in 2007 and 2008, respectively 300 274 Class B Common
Stock, $.01 par value, 40,000,000 shares authorized; 21,593,025 and
21,344,727 issued and outstanding in 2007 and 2008, respectively
216 213 Additional paid-in capital 621,528 503,784 Retained
earnings 537,044 631,978 Accumulated other comprehensive loss -
(3,224) Total Shareholders' Equity 1,159,088 1,133,025 Total
Liabilities and Shareholders' Equity $1,982,117 $2,048,065
Consolidated Statements of Cash Flows (In Thousands) Nine Months
Ended August 31, 2007 August 31, 2008 (Unaudited) OPERATING
ACTIVITIES Net income $63,726 $100,974 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization 62,973 52,618 Minority interest - (130)
Stock-based compensation 3,233 2,291 Amortization of financing
costs 388 387 Deferred income taxes 16,004 15,845 Loss (income)
from equity investments 21,756 (4,614) Excess tax benefits relating
to stock-based compensation (169) (7) Impairment of long-lived
assets, non-cash 6,143 308 Other, net 1,314 3,826 Changes in
operating assets and liabilities: Receivables, net (3,315) (13,825)
Inventories, prepaid expenses and other assets (28,737) (13,540)
Deposits with Internal Revenue Service (7,123) - Accounts payable
and other liabilities 9,465 5,090 Deferred income 58,515 22,428
Income taxes (2,576) 5,638 Net cash provided by operating
activities 201,597 177,289 INVESTING ACTIVITIES Capital
expenditures (70,439) (87,422) Acquisition of business, net of cash
acquired (87,111) - Proceeds from affiliate 67 4,700 Advance to
affiliate - (16,572) Increase in restricted cash - (46,585)
Proceeds from short-term investments 105,120 41,500 Purchases of
short-term investments (66,370) (2,450) Purchases of equity
investments - (81) Other, net 58 850 Net cash used in investing
activities (118,675) (106,060) FINANCING ACTIVITIES Proceeds under
credit facility 65,000 20,000 Payments under credit facility
(65,000) (20,000) Proceeds of long-term debt - 51,300 Payment of
long-term debt (29,311) (2,369) Exercise of Class A common stock
options 357 - Cash dividends paid (5,292) (5,960) Excess tax
benefits relating to stock-based compensation 169 7 Reacquisition
of previously issued common stock (51,517) (119,913) Net cash used
in financing activities (85,594) (76,935) Net decrease in cash and
cash equivalents (2,672) (5,706) Cash and cash equivalents at
beginning of period 59,681 57,316 Cash and cash equivalents at end
of period $57,009 $51,610 DATASOURCE: International Speedway
Corporation CONTACT: Wes Harris, Senior Director, Corporate and
Investor Communications, +1-386-947-6465, for International
Speedway Corporation Web site: http://www.iscmotorsports.com/
Copyright